Question by Scorpquestion: I have an S Corporation in New York which is failing. Am I responsible for the balance of a real estate lease?
Our lease does not have a personal gauranty and when we close the business we realize we will have to leave in the middle of the night. Can the development company that owns the strip plaza come after us for the balance of the lease? I’ve done everything according to the S Corporation guidelines including filing yearly minutes. How strong is the corporate veil on this type of situation?
Best answer:
Answer by beaches li
I worked for a property management company and someone he had as a tenant moved out in the middle of the night on Long Island and he is suing them for the lease, lawyer fees and other things that are equaling around 90K he knows he my only get 50K or a judgment but he will get something. an S corporation means your responsible personally-I once owned a business with2 partners and they had it set up like that -I was young and it was family friends but I would not do it Again. talk to the landlord and explain your Business is not doing well and you need to get out of your lease early. see a lawyer and see if there is an escape clause but dont move n the middle of the night you will just be in more trouble then you already are.good luck
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